Automotive Properties REIT Completes $50 Million Equity Offering

Executive Summary

• Automotive Properties REIT closed a bought‑deal public offering of 3,070,000 units at $11.11 per unit, raising approximately $34 million in gross proceeds.
• Concurrently, the REIT completed a private placement of 1,442,844 units to Dilawri for roughly $16 million in gross proceeds, with an additional option for up to 216,427 units.
• Net proceeds will be used primarily to repay indebtedness related to a recent acquisition of three automotive dealership properties in Dorval, Québec, with any remaining funds allocated to general trust purposes.

Key Details

• Public Offering:
• Units sold: 3,070,000
• Price per unit: $11.11
• Gross proceeds: ~ $34 million
• Underwriters: TD Securities Inc. and Scotiabank (book‑run)

• Over‑allotment option: up to 460,500 additional units, exercisable within 30 days of closing

• Concurrent Private Placement:

• Units sold: 1,442,844 to Dilawri (member of the Dilawri Group)
• Price per unit: $11.11
• Gross proceeds: ~ $16 million

• Additional purchase option for Dilawri: up to 216,427 units, tied to underwriters’ over‑allotment exercise

• Statutory Hold Period: Units from the private placement are subject to a four‑month plus one day hold period from the closing date.

• Use of Proceeds:

• Primary purpose: repayment of credit facility indebtedness, including debt incurred for the cash portion of the Dorval dealership property acquisition.

• Secondary purpose: any remaining funds will be applied to general trust purposes.

• Regulatory Note: The securities are not and will not be registered under U.S. securities laws; they may not be offered or sold in the United States absent registration or an applicable exemption.

Notable Quotes

(No direct quotes were provided in the release.)